Ifo Business Survey in May 2005

The Ifo Business Climate Index for Germany industry and trade once again dropped slightly dropped in May after it had already done so three times in a row in the previous months. The surveyed businesses again assessed their business prospects more sceptically than in the preceding month. On the other hand, the appraisals of the current situation stabilised. Future prospects in the export sector were assessed less optimistically. In western Germany the business climate cooled down slightly more than the German average; alongside the more sceptical assessment of the business outlook, the assessments of the current situation were also negative. Hence, according to the results of the May Ifo Business Survey, a cyclical recovery is not in sight in the near future.